IDEAS home Printed from https://ideas.repec.org/p/ags/pugtwp/331650.html
   My bibliography  Save this paper

Trade and Aid Policies: Their Impact on Economic Development in Mozambique

Author

Listed:
  • Haaparanta, Pertti
  • Kerkela, Leena

Abstract

We study in this paper the impacts on the Mozambican economy of various trade agreements. We also estimate the impacts of aid and trade facilitation. Finally, we also conduct an in‐depth study of one sector, sugar production that our analysis shows to be potentially important in future for Mozambique. It is an important sector also for EU because of its current plans to liberalise the sector. Mozambique does not seem to gain from the trade agreements studied except from some agreements with EU. The same holds for the Doha round. At the same time trade facilitation has beneficial effects. Adverse impacts of aid (e.g. loss of competitiveness due real appreciation of the currency) are estimated to be very small and may be non‐ existent. Trade facilitation has large impacts on the production structure with new sectors growing and existing important sectors (except sugar) contracting. The results imply that aid‐for‐trade programmes have large potential but they must be planned carefully.

Suggested Citation

  • Haaparanta, Pertti & Kerkela, Leena, 2007. "Trade and Aid Policies: Their Impact on Economic Development in Mozambique," Conference papers 331650, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    • Handle: RePEc:ags:pugtwp:331650
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/331650/files/3283.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Srinivasan, T. N., 2004. "China and India: economic performance, competition and cooperation: an update," Journal of Asian Economics, Elsevier, vol. 15(4), pages 613-636, August.
    2. World Bank, 2004. "Trade Policies in South Asia : An Overview, Volume 2. An Overview," World Bank Publications - Reports 15657, The World Bank Group.
    3. Hausmann, Ricardo & Rodrik, Dani, 2003. "Economic development as self-discovery," Journal of Development Economics, Elsevier, vol. 72(2), pages 603-633, December.
    4. James Markusen & Thomas F. Rutherford & David Tarr, 2017. "Trade and direct investment in producer services and the domestic market for expertise," World Scientific Book Chapters, in: Trade Policies for Development and Transition, chapter 19, pages 439-458, World Scientific Publishing Co. Pte. Ltd..
    5. Ianchovichina, Elena, 2004. "Trade policy analysis in the presence of duty drawbacks," Journal of Policy Modeling, Elsevier, vol. 26(3), pages 353-371, April.
    6. Will Martin & Kym Anderson, 2006. "Agricultural Trade Reform and the Doha Development Agenda," World Bank Publications - Books, The World Bank Group, number 6889.
    7. Daron Acemoglu & Jaume Ventura, 2002. "The World Income Distribution," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 117(2), pages 659-694.
    8. David Hummels & Peter J. Klenow, 2005. "The Variety and Quality of a Nation's Exports," American Economic Review, American Economic Association, vol. 95(3), pages 704-723, June.
    9. Puga, Diego & Venables, Anthony J, 1999. "Agglomeration and Economic Development: Import Substitution vs. Trade Liberalisation," Economic Journal, Royal Economic Society, vol. 109(455), pages 292-311, April.
    10. Will Martin, 1993. "The Fallacy of Composition and Developing Country Exports of Manufactures," The World Economy, Wiley Blackwell, vol. 16(2), pages 159-172, March.
    11. World Bank, 2004. "Trade Policies in South Asia : An Overview, Volume 3. Some Key Sectors," World Bank Publications - Reports 15658, The World Bank Group.
    12. World Bank, 2004. "Trade Policies in South Asia : An Overview, Volume 1. Operational Summary," World Bank Publications - Reports 14379, The World Bank Group.
    13. World Bank, 2003. "Global Economic Prospects 2004 : Realizing the Development Promise of the Doha Agenda," World Bank Publications - Books, The World Bank Group, number 14782.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Volz, Ute B., 2008. "Aging, Labor Supply and Consumption - Sectoral Effects of Demographic Change in Germany," Conference papers 331763, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    2. L. Alan Winters & Shahid Yusuf, 2007. "Dancing with the Giants: China, India, and the Global Economy," World Bank Publications - Books, The World Bank Group, number 6632.
    3. Betina Dimaranan & Elena Ianchovichina & Will Martin, 2009. "How will growth in China and India affect the world economy?," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 145(3), pages 551-571, October.
    4. Chris Milner, 2013. "Declining Protection in Developing Countries: Fact or Fiction?," The World Economy, Wiley Blackwell, vol. 36(6), pages 689-700, June.
    5. Asuyama, Yoko, 2015. "Skill sorting and production chains : evidence from India," IDE Discussion Papers 545, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    6. Amirul Islam & Harry Bloch & Ruhul Salim, 2014. "How effective is the Free Trade Agreement in South Asia? An empirical investigation," International Review of Applied Economics, Taylor & Francis Journals, vol. 28(5), pages 611-627, September.
    7. Liyanaarachchi, Tilak Susantha & Bandara, Layatilleke S. & Naranpanawa, Athula, 2014. "A Quantitive Evaluation of the Potential Effects of Trade Policy Reversal in Sri Lanka: A Computable General Equilibrium (CGE) Analysis," Sri Lankan Journal of Agricultural Economics, Sri Lanka Agricultural Economics Association (SAEA), vol. 16, pages 1-26, November.
    8. Ramesh Chandra & Rajiv Kumar, 2010. "South Asian Integration: Prospects and Lessons from East Asia," Chapters, in: Masahiro Kawai & Jong-Wha Lee & Peter A. Petri & Giovanni Capanelli (ed.), Asian Regionalism in the World Economy, chapter 12, Edward Elgar Publishing.
    9. Asian Bank, 2017. "Bangladesh: Looking Beyond Garments - Employment Diagnostic Study," Working Papers id:11767, eSocialSciences.
    10. Corsetti, Giancarlo & Martin, Philippe & Pesenti, Paolo, 2007. "Productivity, terms of trade and the `home market effect'," Journal of International Economics, Elsevier, vol. 73(1), pages 99-127, September.
    11. Kym Anderson, 2005. "On the Virtues of Multilateral Trade Negotiations," The Economic Record, The Economic Society of Australia, vol. 81(255), pages 414-438, December.
    12. Mary Amiti & Caroline Freund, 2010. "The Anatomy of China's Export Growth," NBER Chapters, in: China's Growing Role in World Trade, pages 35-56, National Bureau of Economic Research, Inc.
    13. William R Kerr, 2018. "Heterogeneous Technology Diffusion and Ricardian Trade Patterns," The World Bank Economic Review, World Bank, vol. 32(1), pages 163-182.
    14. Mohamed Hedi Bchir & Sébastien Jean & David Laborde, 2006. "Binding Overhang and Tariff-Cutting Formulas," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 142(2), pages 207-232, July.
    15. Ricardo Hausmann & Jason Hwang & Dani Rodrik, 2007. "What you export matters," Journal of Economic Growth, Springer, vol. 12(1), pages 1-25, March.
    16. Abbott, Philip & Bentzen, Jeanet & Huong, Thi Lan & Tarp, Finn, 2007. "A Critical Review of Studies on the Social and Economic Impacts of Vietnam’s International Economic Integration," MPRA Paper 29789, University Library of Munich, Germany.
    17. Olivier Cadot & Céline Carrère & Vanessa Strauss-Kahn, 2013. "Trade Diversification, Income, And Growth: What Do We Know?," Journal of Economic Surveys, Wiley Blackwell, vol. 27(4), pages 790-812, September.
    18. Vahagn Galstyan & Philip R. Lane, 2008. "External Imbalances and the Extensive Margin of Trade," Economic Notes, Banca Monte dei Paschi di Siena SpA, vol. 37(3), pages 241-257, November.
    19. Volpe Martincus, Christian & Carballo, Jerónimo, 2010. "Beyond the average effects: The distributional impacts of export promotion programs in developing countries," Journal of Development Economics, Elsevier, vol. 92(2), pages 201-214, July.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:pugtwp:331650. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/gtpurus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.